Exam 4: Income Statement and Related Information

Simmons Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax 430,000 Dividends declared 320,000 Net income 1,000,000 Retained earnings, 1/1/07, as reported 2,000,000 Simmons should report retained earnings, 1/1/07, as adjusted at

Craig Rusch Corporation reports the following information: Net income \ 500,000 Dividends on common stock 140,000 Dividends on preferred stock 60,000 Weighted average common shares outstanding 100,000 Rusch should report earnings per share of

Comprehensive income includes all changes in equity during a period except those resulting from distributions to owners.

During 2007, Gomez Corporation disposed of Pine Division, a major component of its business.Gomez realized a gain of $1,200,000, net of taxes, on the sale of Pine's assets.Pine's operating losses, net of taxes, were $1,400,000 in 2007.How should these facts be reported in Gomez's income statement for 2007? $\text { Total Amount to be Included in }$ Income from Results of Continuing Operations Discontinued Operations a. \ 1,400,000 loss \ 1,200,000 gain b. 200,000 loss 0 c. 0 200,000 loss d. 1,200,000 qain 1,400,000 loss

Comprehensive income includes all of the following except